GasLog said that it has completed the acquisition of two LNG carriers from Methane Services Limited, a BG Group unit, which was agreed on December 22, 2014.
This completes the third acquisition of ships from BG by GasLog in the last twelve months, with eight vessels acquired in total, the company informed in a statement.
The two ships will be chartered back to MSL for nine and eleven year initial terms. MSL has options to extend the term of the time charters for each vessel for three or five years at its election. The two vessels, built in 2010, are the Methane Becki Anne and Methane Julia Louise and each have a cargo capacity of 170,000 cubic meters and have on-board reliquefaction plants, which enable the vessels to operate in a more fuel efficient manner at a greater range of speeds than would otherwise be achievable.
Due to the length of the charters, both vessels will be eligible for drop down into GasLog Partners, that has 3 years in which to exercise its options to purchase these ships from GasLog at fair market value. This will potentially increase future distributions to GasLog in respect of its limited partner and general partner interests in the Partnership.
To complete the transaction, GasLog has drawn down on a $460 million credit facility led by DNB Bank, which comprises a $325 million secured credit facility and a $135 million subordinated two-year loan facility at rates in line with recent GasLog financings.
Poten Capital Services advised GasLog on this transaction.
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Image: BG Group